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Worldpay looking to capitalise on e-commerce growth in Australia and New Zealand

Following the announcement of a merger agreement between Worldpay and FIS, the payments giant has now announced plans to invest in the Asia Pacific region

Worldpay plans to invest in Australia and New Zealand

Payments service provider Worldpay has revealed plans to invest in Australasia, with two new offices in Australia and a new card payments licence in New Zealand.

Worldpay will open offices in Sydney and Melbourne, and hopes the investment in the region will help broaden its market presence and improve payment processing capabilities for clients in a growing e-commerce market.

Phil Pomford, Worldpay’s general manager of global e-commerce for Asia-Pacific, said: “Australasia is an exciting region with lots of growth potential, but also has its own unique set of challenges.

“By building a team of payments experts located in Australia, alongside the addition of a domestic card payment acquiring capability in New Zealand, Worldpay can offer a service that goes beyond the transactional.

“Our investment and addition of this new licence will enable us to further provide unparalleled access to global markets to help e-commerce businesses deliver on their international growth ambitions.”

Worldpay hopes to take advantage of e-commerce growth in Australia and New Zealand

Worldpay expects e-commerce payments in Australia to grow by more than 37% over the next three years to create a market worth around $40bn (£30bn).

New Zealand is also expected to have significant e-commerce growth over the same period, and to be worth $2.8bn (£2.1bn) by 2022.

“Upon closing later this year, our two powerhouse organisations will combine forces to offer a customer-driven combination of scale, global presence and the industry’s broadest range of global financial solutions.

FIS’ acquisition of Worldpay will help both companies expand global operations

“As a combined organisation, we will bring the most modern solutions targeted at the highest growth markets.

“The long-term value we will create for clients and for shareholders will set the bar in our industry and will create a range of new career opportunities for our employees.

Worldpay acquisition will ‘drastically improve’ the prospects of FIS

She said: “With the acquisition of Worldpay, FIS stands to drastically improve its position in the US market by combining the two companies’ complementary services.

“In 2018, Worldpay processed over $1.4tn (£1.06tn) worth of card transactions in the US alone, and therefore FIS immediately gains access to this huge revenue stream and a large merchant client base.

“Worldpay, as of year-end 2018, held a 21% share of the US merchant acquiring market by value of acquired transactions, according to GlobalData’s Merchant Acquiring Analytics, making it the largest player in the US, in addition to its international presence across 146 countries.

“Following the 2017 acquisition of Worldpay by Vantiv, today’s Worldpay represents all of the business of both those companies – and as a result FIS will hold a commanding position in the US market following the deal.”

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